Bebe Co is a small company that manufactures and sells high-quality.blouses. Its customers are mainly fashion boutiques.
Bebe Co has two directors, one of who is non-executive. The other is involved in the day-to-day administration of the company. There are ten other employees. Six of these work in the factory, one works in the warehouse, one is a sales representative and two are accounts staff. The accounts staff consist of Miss Ines, who is responsible for processing sales and receivables, and Mrs. Evie, who is the purchases and wages clerk. Mrs. Evie works part-time, five mornings a week. The company's sales representative visits shops throughout the region. He takes orders from customers which he records on a pre-numbered two-part order form. He passes the completed forms to the accounts department. Miss Ines files one copy of the order form in numerical sequence and passes the other to the warehouse.



The completed order is dispatched from the warehouse by the carrier, accompanied by one copy of a dispatch note. The other copy is sent to Miss Ines, who prepares an invoice based on the information it contains and on the company's price list. She sends one copy of the invoice to the customer, and a second copy of the invoice is retained



Each Friday, Miss Ines inputs the week's invoices to the computerized sales ledger. She then files the invoices alphabetically by customer name. Dispatch notes are not retained because filing space is limited. Miss Ines opens the post daily and lists remittances received from credit customers. Every Friday, she inputs the information listed to the sales ledger. Cheques received are banked daily by the executive director.



Miss Ines reviews the sales ledger balances every month and writes to customers who have not paid within 90 days of receiving goods. The sales ledger is printed out annually for year-end purposes. Otherwise, no hard copy is printed, and Miss Ines reviews the sales ledger on the computer screen. The company's computer package includes the facility to produce a sales day book and sales ledger control account. These are not used because Miss Ines considers that the low volume of transactions (10-15 invoices per week) makes them unnecessary.
Requirements
a) Explain the particular issues relating to controls which would affect the audit of a small company such as Knits.
b) List six control objectives of a sales system.
c) State, with reasons, what you consider to be the potential deficiencies in Ecovacs’s present system of accounting for sales and receivables.
d) List and explain the controls that a small firm such as Ecovacs could feasibly adopt to overcome the deficiencies you have identified.

It should be noted that some of the issues that relate to controls that could affect the audit of a small company include the separation of duties, documentation, etc.

Some of the problems that van lap be faced during the audit include the failure to exercise professional care and the deficiency in confirming account receivables.

The control objectives of a sales system include:

It should be noted that the deficiencies in the system of accounting include the determination of the face value of the receivables and the length of time the receivable will be outstanding.

Lastly, to avoid the problem above, consideration should be given to the integrity of the firm, and the financial soundness of the company.

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What affects the egg coagulation in custards and creams!

What of the following would not be relevant in a make-or-buy decision? What of the following would not be relevant in a make-or-buy decision?
Select one:
a. Avoidable fixed cost
b. Incremental fixed costs
c. Unavoidable variable costs
d. Opportunity costs

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Suppose the supply and demand equation are given as follow:
Demand: Qd=115-2*p
Supply: Qs=13+3*p
What's the equilibrium price? (Hint: enter your answer in 2 decimal places)
Your Answer:
Answer

On January 1, Year 1, Hardy Company had a balance of $116,500 in its Common Stock account. During Year 1, Hardy paid $38,000 to purchase treasury stock. Treasury stock is accounted for using the cost method. The balance in the Common Stock account on December 31, Year 1, was $147,500. Assume that the common stock is no par stock. Required a. Determine the cash inflow from the issue of common stock. b. Prepare the financing activities section of the Year 1 statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)

The circular flow of income model shows

a. that consumers demand products and supply resources.

b. that producers supply products and demand resources.

c. that the two basic institutions of households (consumers and businesses (producers) are each demanders and suppliers.

d. that the real flow and the money flow are in opposite.

e. all of the above

Answer:
e. all of the above

A tax on the amount of money a person earns in a year is a(n)
A. income tax
B. sales tax
C. credit tax
O D. property tax

What low-risk investment can provide Kazuo income when he retires?
a. real estate
b. stocks
c. bonds
d. ira’s

Match the technology with the appropriate task

QUESTION 7 of 10: What is an advantage of selling consumable items?
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a) They do not need refrigeration
b) They typically have a large profit margin
c) They are long-lasting
d) They tend to generate repeat business
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Jack went to the ABC Casino to gamble. ABC offers its customers one free spin of the Million Dollar Wheel if they fill out an application form. Jack filled out the form, spun the Million Dollar Wheel, and won. However, now ABC refuses to pay, claiming that because Jack did not purchase his chance at the Million Dollar Wheel, Jack gave no consideration and therefore, no contract was formed. Identify the accurate statement.

A. No contract was formed because Jack paid no money for his chance at the Million Dollar Wheel.
B. No contract was formed because ABC did not sign any written contract as an obligation to do so.
C. A contract was formed because filling out an application can constitute legal consideration.
D. A contract was formed because no consideration is needed when a customer takes advantage of a "free" offer.

Select the correct answer
What type of income is received through rent?
A. earned income
B. passive income
C. portfolio income
D. business income

Arthur is a tax preparer doing business as a sole proprietor. Under what circumstances could he receive a pass-through deduction that is not limited as a result of it being an SSTB?

At the end of last year, Cynthia, a 20 percent partner in the five-person CYG partnership, has an outside basis of $28,500, including her $14,000 share of CYG debt. On January 1 of the current year, Cynthia sells her partnership interest to Roger for a cash payment of $21,500 and the assumption of her share of CYG's debt CYG has no hot assets. What is the amount and character of Cynthia's recognized gain or loss on the sale?
A. $7,000 capital loss.
B. $2,000 ordinary loss.
C. $7,000 capital gain.
D. $7,500 ordinary income.

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Kevin has a client who wants to invest in an account that earns 3% interest, compounded annually. The client opens the account with an initial deposit of $5,000, and deposits an additional $5,000 into the account each year thereafter. Assuming no withdrawals or other deposits are made and that the interest rate is fixed, the balance of the account (rounded to the nearest dollar) after the tenth deposit is __________.

Rachel borrows money from her bank to buy a car. What type of bank service
is Rachel using?
O A. Credit card
B. Checking account
C. Savings account
D. Loan

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while calculating the coefficient of correlation between two variables x and y, the following results were obtained: n=25,

Which of the following should be included in an individual taxpayers federal gross income

6.You now have the agreement with the company and will sign the contract as you and the company are satisfied with the contract agreement. Of course, this is will be your first step to build a strong relationship between you and your employer. Your manager will know more about you. This represent which of the negotiation process element?


A- Gather information

B- Manage concessions

C- Manage time

D- Build the relationship


7.You and the other party have either come to an agreement on the terms, or one party has decided that the final offer is unacceptable and therefore must be walked away from. Most negotiators assume that if their best offer has been rejected, there’s nothing left to do. You made your best offer and that’s the best you can do. This represent which of the negotiation process element?


A- Gather information

B- Manage concessions

C- Manage time

D- Build the relationship


8.Assemble the information you’ve gathered in a way that supports your position. You can present facts that show what you will contribute to the organization in the future, which in turn demonstrates your value. This represent which of the negotiation process element?


A- Gather information

B- Manage concessions

C- Manage time

D- Build the relationship

U.S. Treasury bills are available for purchase this week at the following prices (based upon $100 par value) and with the indicated maturities:
a. $97.25, 182 days
b. $95.75, 270 days
c. $98.75, 91 days
Calculate the bank discount rate (DR) on each bill if it is held to maturity. What is the equivalent yield to maturity (sometimes called the bond-equivalent or coupon-equivalent yield) on each of these Treasury bills?

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How can a company economically benefit by Producing green products

According to the income balance, the “+” sign refers to _____ and the “-” sign refers to _____

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You sell friendship bracelets. You have an agreement with your best friend, Georgina, who is a great artist
in photography, that she will photograph all her subjects wearing your friendship bracelets. You have
agreed that you will get 25 percent of the proceeds from the sale of photographs and she will get 25
percent of the sale proceeds from your bracelets. It turns out that Georgina had a photo-lab partner who
actually did all the film and photo development while she just took the pictures, and who wanted part of her
proceeds. Because of this arrangement, you are considered to be a partner with him.
False
Theo

7. The Moroccan monetary authority is using a heavily-managed float to keep the dirham at U.S. $0.12 per dirham. Under current foreign exchange market conditions, nonofficial supply and demand would clear at U.S. $0.15 per dirham.

a. Using official intervention, what does the official Moroccan monetary authority have to do to keep the exchange rate at U.S. $0.12 per dirham?
b. If the monetary authority believes that this is a temporary disequilibrium, what does the authority expect to happen soon?
c. If private investors and speculators believe that this is a fundamental disequilibrium, what actions are they likely to take?